Bill > HB2865

This bill modifies Arizona law for homeowners' associations (HOAs) in both condominiums and planned communities by restricting how attorney fees and related legal costs can be assessed against unit owners or members. Specifically, the bill prevents HOAs from charging their legal expenses directly to individual unit owners or members, even if such charges were previously allowed in the association's governing documents. Instead, if a unit owner or member successfully wins a legal action against the HOA, they can now recover their own attorney fees and costs. The bill explicitly excludes these provisions from applying to legal actions involving third-party vendors, developers, or declarants, and does not apply to actions under section 12-552 of Arizona law. This change aims to protect individual homeowners from being financially burdened by the HOA's legal expenses and provides a mechanism for homeowners to seek reimbursement of their legal costs if they prevail in a dispute with their association.

Business and Industry, Government Affairs

https://apps.azleg.gov/BillStatus/BillOverview/83337